Chances are that if you own a flat in Bognor Regis you actually own a long leasehold interest over your property
It is conventional wisdom that a property with in excess of 100 years remaining is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in Bognor Regis,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Bognor Regis valuers.
During the course of the last few months Joseph, came critically near to the 80-year mark with the lease on his first floor apartment in Bognor Regis. In buying his property 19 years previously, the unexpired term was of minimal bearing. Luckily, it dawned on him that he needed to take steps soon on a lease extension. Joseph extended the lease just in the nick of time in May. Joseph and the freeholder ultimately agreed on the final figure of £5,500 . If he failed to meet the deadline, the premium would have escalated by at least £875.
Last Christmas we were phoned by Mrs Y Lefèvre , who bought a garden apartment in Bognor Regis in January 2001. We are asked if we could shed any light on how much (approximately) price could be to prolong the lease by 90 years. Comparable properties in Bognor Regis with an extended lease were worth £205,000. The mid-range ground rent payable was £50 invoiced monthly. The lease lapsed on 8 February 2104. Considering the 78 years remaining we estimated the premium to the freeholder to extend the lease to be between £7,600 and £8,800 not including legals.
Dr Edward Laurent took over the lease of a ground floor apartment in Bognor Regis in March 2007. The dilemma was if we could shed any light on how much (roughly) price would likely be to prolong the lease by an additional years. Similar flats in Bognor Regis with 100 year plus lease were valued about £270,000. The mid-range ground rent payable was £65 billed every twelve months. The lease finished on 6 April 2094. Considering the 68 years left we approximated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of fees.